RBI to banks: Wholesalers, retailers allowed to migrate to new Udyam portal, file fresh registrations

By: |
July 08, 2021 2:21 PM

Ease of Doing Business for MSMEs: Udyam Registration, launched in July last year, is a self-declaration paperless and free-of-cost portal platform for new and existing MSMEs to register with their Aadhaar number.

During this quarter, selected manufacturing companies will be approached by the RBI. The RBI will later release the results pertaining to the January-March 2021 quarter.According to the available government data, 35.80 lakh MSMEs were registered on the Udyam portal as of July 8, 2021.

Ease of Doing Business for MSMEs: Nearly a week after the government announced reinstating retail and wholesale trades under MSME classification, the central bank Reserve Bank of India (RBI) has now written to banks to include the two for priority sector lending. RBI also informed all banks that such businesses engaged in retail and wholesale trade would be allowed to register on the MSME registration portal – Udyam Registration, as announced by the government.

Those operating in retail and wholesale trade and repair of motor vehicles and motorcycles with NIC code 45, Wholesale trade except of motor vehicles and motorcycles with NIC code 46, and Retail trade except of motor vehicles and motorcycles with NIC code 47 would be allowed to benefit under the revised guideline, according to the RBI circular sent on Wednesday. “The Enterprises having Udyog Aadhaar Memorandum (UAM) under above three NIC Codes are now allowed to migrate to Udyam Registration Portal or file Udyam Registration afresh,” the circular read.

Udyam Registration, launched in July last year, is a self-declaration paperless and free-of-cost portal platform for new and existing MSMEs to register with their Aadhaar number. Moreover, the portal automatically pulls PAN and GST-linked details on investment in the business, according to Udyam Registration since it is integrated with Income Tax and GSTIN systems. MSMEs are given a permanent registration number and a certificate post-registration. The certificate bears a QR Code from which the details about the enterprise can be accessed.

Subscribe to Financial Express SME newsletter now: Your weekly dose of news, views, and updates from the world of micro, small, and medium enterprises

According to the available government data, 35.80 lakh MSMEs were registered on the Udyam portal as of July 8, 2021. As per the MSME Ministry annual report 2020-21, there were 1.02 crores Udyog Aadhaar Memorandum (UAM)-registered MSMEs between September 2015 and June 2020 apart from nearly 22 lakh units registered under Entrepreneur Memorandum II between 2007 and 2015. UAM and EM II were replaced by Udyam Registration last year.

However, MSME associations have expressed concern over the inclusion of retail and wholesale trades. For instance, MSME body FISME had said traders will now import and supply to the government and would be able to leverage promotional schemes such as International cooperation which were meant to promote India-made goods in international markets. Essentially, the concern has been around expanding the already vast MSME sector by including traders and consequently narrowing down the share of benefits that otherwise were earlier spread to MSMEs only.

“This landmark decision will have a structural impact for the sector, helping it get formalised by giving better finance options for businesses that want to get structured. It will give retail MSMEs the support they need to survive, revive and thrive,” Kumar Rajagopalan, CEO, Retailers Association of India had said, in contrast to MSME associations’ view.

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, Check out latest IPO News, Best Performing IPOs, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.